Egypt's MNT-Halan Subsidiary Tasaheel Closes Landmark EGP 4.7B SME-Backed Bond Issuance
Tasaheel, the microfinance subsidiary of Egypt's leading fintech unicorn MNT-Halan, has successfully closed a securitised bond issuance worth EGP 4.7 billion (approx. $98 million USD). The transaction is a milestone for Egypt's capital markets as it represents the first-ever issuance to be backed exclusively by a portfolio of loans to Small and Medium-sized Enterprises (SMEs).
By the Numbers
EGP 4.7 Billion: Total value of the bond issuance (approx. $98 million).
1st: The first SME-backed securitisation in Egypt.
AA+ to A: The strong credit ratings assigned to the bond's tranches by MERIS.
A First for Egypt's Capital Markets
This landmark deal pioneers a new asset class for investors in Egypt and creates an innovative new funding channel for entities that provide financing to the vital SME sector. The bond, which is issued in four tranches with tenors ranging from 13 to 60 months, has received strong credit ratings from the Middle East Ratings and Investors Service (MERIS), ranging from AA+ to A, indicating high confidence in the quality of the underlying assets.
The Financial Architects Behind the Deal
The complex transaction was managed by a consortium of Egypt's top financial institutions. EFG Hermes, part of EFG Holding, acted as the sole financial advisor and transaction manager. The underwriting was handled by a group of leading banks including EFG Hermes, the National Bank of Egypt (NBE), Commercial International Bank (CIB), Al Ahli Pharos, and Banque du Caire (BDC).
Fueling Growth in the SME Sector
Securitisation allows a lender to bundle its existing loans and sell them to investors, freeing up capital on its balance sheet. Tasaheel will use the EGP 4.7 billion raised from this issuance to de-leverage its balance sheet and recycle the capital into providing new financing to thousands more SMEs across Egypt, thereby fueling private sector growth.
Leadership on a Milestone Transaction
Mounir Nakhla, Founder and CEO of MNT-Halan, commented on the achievement, stating, "This deal is a testament to the quality of our portfolio, the strength of our team, and the confidence the market has in our business. This transaction marks a significant milestone as it is the first in Egypt to be backed by an SME loan portfolio, paving the way for further innovation in the country's capital markets."
About MNT-Halan and Tasaheel
MNT-Halan is Egypt's leading financial technology ecosystem, offering a wide range of digital services including lending, payments, and e-commerce. Its subsidiary, Tasaheel, is one of Egypt's largest providers of microfinance and a key lender to the nation's SMEs.
Looking Ahead
The success of this first-of-its-kind issuance creates a powerful and repeatable model for financing SME growth in Egypt. It demonstrates the increasing sophistication of the country's capital markets and supports the national goals of enhancing financial inclusion and empowering the private sector.
Source: Zawya